Purpose
This program promotes self-sufficiency for low-income Missourians through a matched savings program. 

Authorization
Sections 208.750 to 208.775, RSMo 

How the Program Works
The Department of Economic Development (DED) issues state tax credits to an eligible taxpayer that donates money to an organization approved to administer a Family Development Account (FDA) project. 

Organizations approved to administer a Family Development Account project recruit low-income Missourians to participate in a matched savings program to help pay for:

• Education at an accredited institution of higher learning;
• Job training at an accredited or licensed training program;
• Purchase of a primary residence;
• Major repairs or improvements to a primary residence; or
• Start-up capitalization of a small business.

Eligible Applicants
A community-based organization formed under Chapter 352, RSMo. 

Eligible Use of Tax Credits
This tax credit can be applied to:

• Ch. 143 – Income tax, excluding withholding tax
• Ch. 147 – Corporate franchise tax
• Ch. 148 –
  • Bank Tax
  • Insurance Premium Tax
  • Other Financial Institution Tax
• Ch. 153 – Express Companies Tax

This credit has no special attributes.  It must be applied to tax liability for the year it was earned.

Application Procedure
Applications from eligible organizations may be submitted to the FDA program at any time.  Applications will be reviewed in the order they are received. Every effort is made to notify organizations of a tax credit award within 60 days from receipt of the application. 

Funding Limits

• The total tax credits available for any fiscal year is $4 million.
• An organization applying for one or two years may request up to $600,000 in tax credits. 
• The tax credit is for 50% of the amount of the contribution, not to exceed $25,000 (a $50,000 contribution) per contributor.

Contact
Business and Community Services
Finance Management
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO  65102
Phone:  573-751-4539    Fax: 573-522-4322
E-mail: dedfin@ded.mo.gov 

Historic Preservation Tax Credit Program

Purpose
Provide an incentive for the redevelopment of commercial and residential historic structures in Missouri. 

Authorization
Sections 253.545 to 253.561, RSMo 

How the Program Works
The program provides state tax credits equal to 25% of eligible costs and expenses of the rehabilitation of approved historic structures. 

Eligible Areas
Statewide. 

Eligible Applicants
Any taxpayer is eligible to participate in this program.  Not-for-profit entities and government entities are ineligible. 

Eligible Use of Tax Credits
This tax credit can be applied to:

• Ch. 143 – Income tax, excluding withholding tax
• Ch. 148 –
  • Bank Tax
  • Insurance Premium Tax
  • Other Financial Institution Tax

This credit’s special attributes:

• Carryback 3 years
• Carryforward 10 years
• Sellable or transferable 

Application Procedure
An application is submitted to DED, which will then submit the information to the State Historic Preservation Office to determine the eligibility of the property and proposed rehabilitation, based on the standards of the US Department of the Interior. There are no application deadlines, and the program is non-competitive. 

Special Program Requirements
An eligible property must be:

• listed individually on the National Register of Historic Places;
• certified by the MO Department of Natural Resources as contributing to the historical significance of a certified historic district listed on the National Register; or
• of a local historic district that has been certified by the US Department of the Interior.

The costs and expenses associated with the rehabilitation must exceed 50% of the total basis of the property (acquisition cost). 

Contact

Business and Community Services
Development Finance
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO 65102
Phone: 573-522-8004 Fax: 573-522-9462

USDA, Rural Development in Missouri have many financial programs, including loans and grants for all areas of community betterment.  For more information on available programs, please click on the following link http://www.rurdev.usda.gov/mo.  There are area and local offices across the state.  To find the one closest to you, click on Offices off the menu at the top of the web page.

The 2008 applications are now available!  Applications must be postmarked no later than November 16, 2007.

This act authorizes state tax credits for residential rehabilitation and construction costs for properties located in distressed communities* or defined census blocks.

Purpose
To provide an incentive for the rehabilitation or construction of owner-occupied homes in certain areas of the state. 

Authorization
Sections 135.475 to 135.487, RSMo 

How the Program Works

The Department of Economic Development (DED) issues state tax credits to a homeowner who rehabilitates a home or to a homeowner or developer that constructs a new home for owner-occupancy in certain areas of the state. 

Eligible Areas
“Qualifying areas” include “distressed communities,” as defined in 135.530, RSMo, and areas with a median household income of less than 70% of the median household income for the applicable MSA or non-MSA. 

“Eligible areas” with a median household income of 70% to 89% of the median household income for the applicable MSA or non-MSA. 

Eligible Applicants
Any taxpayer who incurs eligible costs for a new residence or rehabilitates a residence for owner occupancy that is located in a designated area.

Eligible Use of Tax Credits
This tax credit can be applied to:

• Ch. 143 – Income tax, excluding withholding tax
• Ch. 147 – Corporate franchise tax
• Ch. 148 –
  • Bank Tax
  • Insurance Premium Tax
  • Other Financial Institution Tax  

This credit’s special attributes:

• Carryback 3 years
• Carryforward 5 years
• Sellable or transferable 

Application Procedure
A pre-application is submitted to DED that includes cost estimates and scope of work. Applications will be accepted during an application cycle starting in September and ending in mid-November.  The applications are granted preliminary approval based on a lottery process.

Funding Limits
The maximum credits available are $8 million for qualifying areas and $8 million for eligible areas.

The credits for a project are determined as follows:

• New Residences in Eligible Areas –15% of eligible costs, tax credits cannot exceed $25,000 per residence;
• New Residences in Qualifying Areas – 15% of eligible costs, tax credits cannot exceed $40,000 per residence;
• Substantial Rehabilitation in Eligible Areas – 25% of eligible costs, minimum costs $10,000, tax credits cannot exceed $25,000 per residence;
• Non-substantial Rehabilitation in Qualifying Areas – 25% of eligible costs, minimum costs $5,000, tax credits cannot exceed $25,000 per residence;
• Substantial Rehabilitation in Qualifying Areas – 35% of eligible costs, minimum costs the greater of $5,000 or 50% of the purchase price, tax credit cannot exceed $70,0000 per residence.

Special Program Requirements
Tax credits may not be claimed in addition to any other state tax credits with the exception of the historic preservation tax credit authorized by sections 253.545 to 253.561, RSMo.  If historic preservation tax credits are claimed, the maximum available credits under this program will be the lesser of 20% of the eligible costs or $40,000. 

Contact
Business and Community Services
Development Finance
301 West High Street, Room 770
P.O. Box 118
Jefferson City, MO  65102
Phone: 573-522-8004            Fax: 573-522-9462 

USDA, Rural Development in Missouri have many financial programs, including loans and grants for all areas of community betterment.  For more information on available programs, please click on the following link http://www.rurdev.usda.gov/mo.  There are area and local offices across the state.  To find the one closest to you, click on Offices off the menu at the top of the web page.